TAIPEI (Taiwan News) — Taiwanese banks' exposure to the US climbed to a record high in Q1, extending the US’ position as their largest overseas market for the 43rd consecutive quarter, CNA reported Monday.
The US remained the largest destination, with exposure rising to a record of around NT$6.6 trillion, accounting for nearly 30% of total foreign claims. Central Bank Department of Financial Inspection Deputy Director-General Hsieh Jen-chun (謝人俊) said the increase was attributed to higher securities investments, larger deposits with the US Federal Reserve, and increased lending.
Taiwanese banks’ foreign claims totaled about NT$22.4 trillion (US$702.6 billion) at the end of March, up 2.5% from the previous quarter, driven mainly by increased lending and claims on the non-bank private sector, according to Central Bank data.
Luxembourg remained the second-largest exposure market, while China ranked third. Taiwanese banks’ exposure to China slipped to about NT$1.6 trillion, continuing a decline from its roughly NT$1.9 trillion peak at the end of 2021 amid China’s economic slowdown, property sector weakness, and global supply chain shifts.
The widening divergence pushed the gap between US and China exposure to a record about NT$5.1 trillion in Q1. The difference has remained above the equivalent of NT$3.2 trillion since mid-2023, reflecting Taiwanese banks’ growing focus on the US market.
Australia, Japan, Hong Kong, the UK, Singapore, France, and Vietnam rounded out the top 10 overseas exposure markets, per UDN. Together, the top 10 accounted for about NT$16.5 trillion, or 73.5%, of Taiwanese banks' total foreign claims.
Hsieh said exposure to Japan fell to about NT$1.2 trillion in the first quarter, mainly due to lower interbank placements and deposits with Japanese banks, while the weaker yen also reduced the value of holdings.
